A STATE-OWNED bank is trying to force a leading businessman to immediately repay loans of €4m which were secured against his holiday home.
Allied Irish Banks (AIB) is trying to get the High Court to make a judgement against Sir Anthony O’Reilly after the loans were secured against a property he owns in Glandore, Co Cork.
Mr O’Reilly previously served as chief executive of the Independent News & Media.
The Irish Times today reported that AIB will also seek judgement against Brookside Investments, the company that owns the coastal estate in west Cork, as well as Indexia Holdings, Sir Anthony’s private investment vehicle that holds his near 5pc stake in INM, and his share of the oil explorer Providence Resources.
Attempts to contact the businessman today for comment were unsuccessful.
AIB began to move in on Mr O’Reilly last week, when it issued proceedings against him, the first step in obtaining a summary judgment.
The well-known businessman will have the opportunity to dispute the claim.
It is reported that Mr O’Reilly re-mortgaged his Glandore property with AIB in early 2009 at the height of the financial crisis.
He had the property valued at €4.3m. Glandore is one of the most sought after holiday locations in the country. AIB lent him almost €4m, secured on the house as well as on Brookside’s bank balance of €278,000.
He also gave the bank a personal guarantee, giving it the right to pursue all of his assets in the event of default.
This month, Indexia began to sell down his INM stake.